Forbes: “Link Dollar to Gold or face Great Depression II”

Steve Forbes (Forbes Magazine) recently warned that government must link the fiat dollar to gold or face another Great Depression.

If that’s true, we’re going to have another Great Depression because government can’t link the current fiat dollar to gold. Why? Two reasons:

1) There are reportedly up to $17 trillion of our current fiat dollars being held offshore. What do you suppose would happen to those $17 trillion if Obama announced that they were backed by gold at, say, $5,000/ounce or even $20,000/ounce?

Those intrinsically worthless $17 trillion would come flying, pouring and stampeding back into the US to be redeemed for physical gold. The influx of $17 trillion would cause US inflation to go hyper.

Our 8,200 tons of gold (less than 300 million ounces) would be disappeared. Why? Because, even at $20,000/ounce, 8,200 tons of gold is only worth $5.7 trillion–about one-third of the $17 trillion allegedly being held offshore. Anyone holding that $17 trillion would know he had only a 30% chance of redeeming his fiat dollars for gold and so would try to instantly send his fiat dollars into the US trying to beat all other competitors. The instant influx of most of $17 trillion into the US economy might precipitate instant hyper-inflation.

2) It is conceivable that the US might try to keep the existing fiat dollar and also create a second “dollar” that’s backed by gold and run both “dollars” are the same time. There’s a problem with starting a new, gold-backed dollar: the last time the US Treasury’s gold was audited was A.D. 1953. It’s unlikely that the US Treasury and/or Federal Reserve still has the 8,200 tons that they claim to have had about 60 years ago. Odds are, the US Treasury and/or Federal Reserve have secretly sold much of those 8,200 tons into the commodities markets in order to hold down the price of gold and maintain the illusory value of the fiat dollar.

Evidence of these secret sales can be inferred from the fact that, in January, A.D. 2013, Germany asked that the 300 tons of German gold held by the US and/or Fed be returned. By January of A.D. 2014, the US had reportedly returned only 5 tons of gold to Germany. The clear implication is that the US gold treasury may have already been massively depleted–perhaps by 80%, 90% or more.

Point: There’s no way to back the current dollar with gold, or even an alternative gold-backed dollar, if there’s little or no gold in the US Treasury.

So, if Forbe’s dilemma–1) back the dollar with gold or 2) suffer the Great Depression II–is correct, we’re going into the depression because we can’t back the current fiat dollar with gold because the outstanding debt is too great, and we probably can’t back a new “dollar” with gold because we don’t have any.

• The only way the US can return to a gold standard and once again back US dollars with gold is if:

1) The current fiat dollar is allowed to die in hyper-inflation–complete with an economic collapse, massive poverty and political instability probably lasting for several years. Why? Because once the current dollar dies, the $17 trillion held overseas becomes worthless and can’t be redeemed for gold. Then,

2) The US creates a completely new dollar that is backed by gold at some extremely high price–but is not exposed to the $17 trillion hoard currently held overseas.

Implications:

1) Don’t expect to see a new dollar backed by gold in less than 3 years (if then); and

2) We can’t return to a gold-backed paper or digital dollar until after the current fiat dollar dies, collapses our economy and subjects us all to suffering and instability of the Great Depression II.

We might we see a serious attempt to back a new paper dollar with gold, but only after we first suffer an economic collapse and another Great Depression (or worse).

Al, great point about the 2013 incident of Germany’s missing gold. By the way, the guilty party is the Federal Reserve. The US government was not involved.

Germany deposited about half its gold reserves with the Fed. Now they are unable to withdraw it except for a small fraction at a time. Germany isn’t even allowed to look at its gold, except for a few bars which the Fed calls “representative” of Germany’s entire holdings.

It’s reasonable to assume that Germany’s gold is no longer there and the Federal Reserve simply stole it. But the international banking cartel is famous for that sort of thing. Even the United States is among its victims, on a grand scale.

Toland wrote: “By the way, the guilty party is the Federal Reserve. The US government was not involved.”

This is true, as is confirmed by the fact that the Germans went looking for their gold in New York City, not Washington DC or other federal enclave.

At about the same time, the Germans dropped in on the Banque de France in Paris to repatriate a similar tonnage of gold from that location. The last I heard was they are having trouble withdrawing from this bank also.

Linking the world’s banknotes to this falsely praised ‘golden calf’ is like attempting to raise a building from the roof down to its foundations. It’s a stupid notion from it’s inception. If mankind is to re-institute ‘Honest Weight and Measure’ of the metallic monetary scheme (as is imperative), then it must occur from the base up.

At present, the world’s banknote scheme has depreciated to about 2 percent from initial value. In American ‘dollar’ terms, that’s 2 ‘cents’. Even a silver unit (framing and walls in the above analogy) 2 percent of the original 371.25 grains would render a tiny coin highly prone to costlier production, easy loss and maddeningly difficult handling. So, the proper choice in ‘bottom up’ restoration is to use copper units to replace the paper. This is what the Chinese did in 1450 AD when their ‘flying money’ delusion came up against the ‘wall’ of supply-demand reality and it saved the Empire from dissolution back into its ‘Warlord District’ roots. That wisdom served well from then until 1932.

Even now, with the elitist controlled, manipulated ‘market’ for metals trade, copper has retained exchange to silver in the 100:1 range (oscillating between 120 and 80). This means that copper replacements for banknotes would immediately trade in silver-weight with almost no resistance whatsoever, readily and immediately drawing that metal into trade.

The ‘Sacred Cow’ of governments’ and bankers’ gold, would then be left to find an exchange rate against silver as the free market dictates … not the willful, self-serving demands of elites. All of these metals will rise significantly in relation to goods, until the sum total of money in circulation equates with goods-at-market during a normal ‘clearing period’ and no one ‘high’ or ‘low’, would be left without economic franchise as the competitive forces of each metal would act to ‘shepherd’ the others into proper valuation.

doesn’t all that presuppose the Zionist/Neocon/Israeli’s don’t set off numerous
PSYOP/False Flag events to continue culling the herd of useless eaters
and terminally ineffective obese braindeadgoy…who watch tv and shop at MalWart

I’m wondering who the government is going to blame for the collapse. I can hear it now:

You anti-government people with your obsession with gold and silver have been speculating and that has caused the panic. If you did not tell the people then they would not have panicked. Therefore, the windfall commodity profit tax needs to be imposed at 90%.

You climate change deniers have caused global problems that have to be paid for now. There will be an anti social tax for media outlets (including the internet) that caused these problems.

You hoarders with your long term food has taken the food out of children in America. All such food needs to be turned in for the greater good.

Since the difficult times began, the number of Americans killed by guns has jumped. To combat this, guns will require to have a firearm stamp (that they will not print) and failing to have such a stamp is a capitol crime until the emergency is over.

The question is: when such arguments are pushed onto the American people, what should be the response?

By my calculations, 60% of Americans live in a fantasy land of propaganda without independent thought. Another 20% knows there’s a scam but doesn’t know how it works. Another 10% sees the scam but have been dis-empowered to think they could do anything about it. The remaining 10% are split between those who are part of machine that keeps the scam going and those opposing it. Less than 1% will even comprehend the rights/privilege argument.

We the people are being abused. We have had a long train of abuses but how long does the train have to be before we must perform our duty as stated in the Declaration? At what point have they gone to far? By promoting “democracy”, the controllers hope that the majority will deal with you. In a democracy, the question to be determined is will the death camps be in Denver or Detroit?

The legal arguments may not be effective in an emergency. You will be labeled by the press, government, and pundits as a mentally ill person who is clogging up the legal system with your bizarre and silly legal arguments. The arguments for freedom must be simplified so the hypnotized population can comprehend it now. It will be more difficult to promote such thoughts once the emergency begins. And, nothing can stop the crisis from occurring at this point.

what really should matter here in America is who is beating the American
people like a beatnik on a set of bongos with poopaganda and multi-layered
lies….and prints the currency & owns the media, and dig this chutzpah…